Yahoo Reports Stable Q4 Earnings With $254M Mobile Revenue
CEO of Yahoo, Marissa Mayer has been a major topic of discussion since yesterday, when she unveiled her plans to to deal with the company’s remaining shares of Chinese Alibaba. That wasn’t all though, as she also revealed the final quarter’s financials of Yahoo and the non-GAAP earnings per share as $.30. The market had expected this number to land at $0.29, but it has managed to exceed expectations.
On the other hand, revenue excluding the cost of acquiring traffic is at $1.179 Billion. This figure did not manage to meet the expected requirement which was $1.19 billion.
Furthermore, Yahoo has reported that its mobile work has managed to generate $254 million in revenue throughout the last quarter, which as you can see has been increased quite significantly from $200 million revenue of this preceding period. The company’s aggregate Transformative Group which include mobile, social, video and other products generated the revenue of $380 million during the previous quarter.
Along with the figures, CEO of Yahoo, Marissa Mayer sent a note to the investors saying that the results of fourth quarter are showcasing stability in the core business of the company.
I’m pleased to report that our performance in Q4 and in 2014 continues to show stability in our core business. Our mobile strategy and focus has transformed Yahoo and yielded significant results.
After these stable results and due to the spin-off announcement by the company, it has received almost 10 percent growth in the afterhours trading.
Yahoo has also revealed full year revenue excluding the traffic acquisition which is $4.618 billion and full year adjusted EBITDA is of $1.362 billion. By the end of 2014, Yahoo possesses cash on hand of $10 billion which has been increased by quite some margin this year due to massive Alibaba public offering. So far, it has not been revealed what Yahoo is planning on to do with this much cash available at hand.
Display revenue of the company came at $532 million in the quarter, while its search revenue came at $467 million. Although display revenue is down by four percent, but the search revenue has seen an increase by 1 percent.
Even with the stable results, Yahoo has been unable to grow and its core ad business seems to suffering as well. I am sure that Miss Mayer will come up with the plan to increase the overall business performance of Yahoo in the coming year.